Bel Agrees to Acquire Power-One Power Solutions From ABB for $117 Million
April 28 2014 - 8:00AM
Business Wire
Bel Fuse Inc. (NASDAQ:BELFA and NASDAQ:BELFB) announced
today that it has entered into a definitive agreement to acquire
the Power-One Power Solutions business of ABB Ltd. (NYSE:ABB). Bel
will pay approximately $117 million in cash to acquire the Power
Solutions business, which had 2013 revenue of approximately $251
million. The acquisition, which is subject to regulatory approvals
and other customary closing conditions, is expected to close in the
second quarter of 2014 and to be immediately accretive to Bel's
earnings.
Headquartered in San Jose, California, and with manufacturing
facilities in Slovakia and China, Power Solutions is a leading
provider of high-efficiency and high-density power conversion
products for server, storage and networking equipment, industrial
applications and power systems. Power Solutions offers a premier
line of standard, modified-standard and custom designed AC/DC,
DC/DC and other specific power conversion products for a variety of
technologies in data centers, telecommunications and industrial
applications. Power Solutions has a global sales footprint and a
diverse customer base that includes some of the largest
corporations and distributors in the world. It has 2,015 associates
world-wide.
Daniel Bernstein, Bel's President and CEO, said, "The
acquisition of Power Solutions is a major step forward in the
development of Bel's power business and the implementation of our
strategy to enhance growth and profitability for our shareholders.
Since 2009, we have believed that the combination of our two
respective power businesses would create a dynamic enterprise
capable of competing effectively on a global basis. Bel is excited
by the many growth opportunities that will be created by this
transaction, and we look forward to building an industry-leading
power business with our new colleagues at Power Solutions."
"Bel Fuse's strong heritage, brand and global position will
provide the Power Solutions business with excellent growth
opportunities," said ABB CEO Ulrich Spiesshofer.
Bel is using KeyBank N.A. to finance the acquisition and will
also use cash on hand. Bel will release earnings for the first
quarter ended March 31, 2014 on Wednesday, April 30, 2014.
Stephens Inc. is acting as financial advisor to Bel in this
transaction.
About Bel
Bel (www.belfuse.com) and its divisions are primarily engaged in
the design, manufacture, and sale of products used in networking,
telecommunications, high-speed data transmission, commercial
aerospace, military, transportation, and consumer electronics.
Products include magnetics (discrete components, power transformers
and MagJack® connectors with integrated magnetics), modules (DC-DC
converters and AC-DC power supplies, integrated analog front end
modules and custom designs), circuit protection (miniature, micro
and surface mount fuses) and interconnect devices (micro, circular
and filtered D Sub connectors, fiber optic connectors, passive
jacks, plugs and high speed cable assemblies). The Company operates
facilities around the world.
Forward Looking Statements
Except for historical information contained in this press
release, the matters discussed in this press release (including the
statements regarding the impact of the Power Solutions acquisition
on Bel's growth and profitability and on Bel's competitive
position; the expected accretive nature of that acquisition; and
the impact of that acquisition on future sales of power products
and related products) are forward looking statements that involve
risks and uncertainties. Actual results could differ materially
from Bel's projections. Among the factors that could cause actual
results to differ materially from such statements are: the market
concerns facing our customers; the continuing viability of sectors
that rely on our products; the effects of business and economic
conditions; difficulties associated with integrating recently
acquired companies, including Power Solutions, capacity and supply
constraints or difficulties; product development, commercializing
or technological difficulties; the regulatory and trade
environment; risks associated with foreign currencies;
uncertainties associated with legal proceedings; the market's
acceptance of the Company's new products and competitive responses
to those new products; and the risk factors detailed from time to
time in the Company's SEC reports. In light of the risks and
uncertainties, there can be no assurance that any forward looking
statement will in fact prove to be correct. We undertake no
obligation to update or revise any forward looking statements.
#4930
Investor Contact:Neil Berkman
Associates310-477-3118info@berkmanassociates.comorCompany
Contact:Bel Fuse Inc.Daniel Bernstein, 201-432-0463President &
CEO
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